Explore Export 2017 | Go Canada presentation by Catrina McNeill and Samantha Khoury

1. Go Canada
Programme Launch
Wednesday 14 June 2017

2. www.investni.com
Agenda
• Welcome by Catrina McNeill, Invest NI
• Introduction
• Canada – Samantha Khoury, Altios International
• Go Canada Programme Overview
• Roles & Timeline
• Q&A

3. Introduction
• NI exports to Canada - £311.4M (Dec 2016)
• 90 NI companies exporting to companies at present
• Invest NI target to increase number of companies exporting to
international markets
• Invest NI office - Toronto
• New initiative – Go Canada
• Highly effective model for ‘internationalising’ SMEs and
• growing exports

4. Programme Objectives
• Developing an increased export orientation
• Increasing awareness of the issues involved in exporting to
Canada
• Enhancing Northern Ireland company export expertise
• Providing the required skills and competencies to develop
growth through export sales

5. Altios International Background –
www.altios.com
• 24 global offices in 16 countries, est 1991
• Contracted provider to Invest NI for the Canadian Territory -
based in Montreal, Canada
• Support public & private sector organisations
• Local language skills, networks and local knowledge

6. Canada - A Vast and Wealthy Country
ONTARIO
•13.9 M inhabitants
QUEBEC
•8.3 M inhabitants
BRITISH COLOMBIA
•4.7 M inhabitants
ALBERTA
•4.2 M inhabitants
MARITIMES
•2.1 M inhabitants
MANITOBA
•1.3 M inhabitants
SASKATCHEWAN
•1.1 M inhabitants
• Canada is a country consisting of ten provinces and three territories.
• Canada is a federal parliamentary democracy and a constitutional monarchy. The federal capital
is Ottawa.
• The country covers 9.9 million square kilometers in total, making it the world’s second
largest country by total area.
• The total population is approximately 36 million inhabitants.
• The population is mainly located in 6 urban centers (Vancouver, Calgary,
Edmonton, Toronto, Ottawa, Montréal)

7. ECONOMY
Official Currency Canadian Dollar (CAD)
Exchange Rate GBP 1 = CAD 1.72 / CAD 1 = GBP 0.58 (May 2017)
GDP
CAD 1.827 Billion
GDP per capita : 51.958 CAD
Growing Rate GDP growth= 2.3 % (annualised, January 2017)
Inflation Rate +1,6 % (May 2017)
Unemployment Rate
6.5% in April 2017 – relatively steady since 2008.
This rate varies depending on the province, from 5.8% (B.C.) to 14.9% (N.L.).
Foreign Direct
Investment (FDI)
At home: $1.065 trillion
Mainly from USA and Europe, then from Asia and Oceania
Abroad: $1.211 trillion
Mainly towards USA and Europe
SOCIAL ENVIRONMENT
Minimum Wage Varies depending on the province, from CAD 10.72/h to CAD13.60/h
Average Monthly
Salary
CAD 4,100 gross, on average.
Labor Laws
Maximum Work Hours, per week: 40 hours
2 weeks of paid leave per year
Canada - Economic Indicators

8. Why Canada?
A Dynamic Market Offering Countless Business Opportunities
Aerospace
700 companies generating
direct annual revenues of more
than $25 billion annually
R&D intensive, with capital
investments upwards of
$1.7 billion
Natural Resources/Renewables
Electricity, renewable energies,
freshwater, crude oil, natural
gas and mining industries
World leader in collaborative
R&D, many partnership
opportunities
ICT / Digital Media
37.000 companies operating in
Canada, 88% working in the
software sector and in the
computer services
World leader in video games,
animation and visual effects
Automotive
450 companies which generated an
annual revenue of $84.7 billion
Annual sales of nearly 20 million
vehicles, annual production of
about 16 million units
Food industry
2nd manufacturing sector in
Canada: world leader in oilseeds
and cereals. 6,7% of the GDP,
2 million employees,
an annual growth of 2,4%
Life & Health Science
The 8th largest pharmaceutical
market in the world - Medical
sector of $6.8 billion,
Duty-free access to the US-the
largest medical devices market in
the world
Services
Global leader in a variety of
business services.
GDP contribution of $83.5 billion
One of the strongest
financial services sectors
in the world
Construction
Building construction is a major
industry, representing 6% of the
global GDP
Ontario is one of the most
dynamic markets in North
America

9. Why Canada?
A Dynamic Market Offering Countless Business Opportunities
For the favourable
business
environment
For the highly-skilled, well-
educated workforce
.

10. Why Canada?
A Dynamic Market Offering Countless Business Opportunities
To evolve in a
competitive R&D
environment
.
To benefit from
lower tax rates
To benefit from
financial stability

11. Why Canada?
A Dynamic Market Offering Countless Business Opportunities
To enjoy investing, working
and… living!
For the market accessibility

12. Strengths
 Proximity and unique relationship with the US,
positively impacting the sales of goods and services
 Robust and diverse economy (mineral resources,
oil & gas, manufacturing, services)Solid and safe
financial sector, and good budgetary balance
 Solid financial sector, and good budgetary
balance;
 Low corporate taxes (rate 13% lower than the
US’s!) and individual taxes
 Political stability, international reputation for
integrity, leadership and diplomacy
Challenges
 An export-driven economy, strongly dependent
on natural resources, which can create currency
instability
 Dispersed population, leading to high logistics
costs and the need for an optimized
distribution network
 Relatively small domestic market, although thriving
 Some industry sectors are regulated by the
government and thus more difficult to approach
(including: defence, alcohol, and agriculture)
 Investments, acquisitions, and mergers are
regulated by the government
Opportunities
NAFTA, the North American Free Trade Agreement signed by Canada, the USA and
Mexico, offers a large market of 500 million consumers to foreign companies.
An agreement between UK and Canada is currently being considered and could lead to a
free trade agreement.
Canada
One of the Wealthiest Countries in the World
(The world’s 10th economic power!)

13. Canada
Direct Access to the Largest Global Economy
Of the 20 largest cities in Canada,
16 are located less than 1h30’s
drive from the USA
484 millions of consumers

14. Canada
Establishing a Business in Canada
• Incorporating a business in Canada is
relatively easy and fast: procedures are
efficient
• Business and corporate taxes are among
the lowest in G7 countries
• The financial system is strong and local
banks are extremely stable
• The labour force is diversified and
• very qualified

15. Canada
Relationship with the UK and Europe
• The UK is Canada’s top European commercial
partner and the global 3rd after the US and China.
• UK goods and services exports to Canada
represent more than GBP 5,5 billion annually –
mainly in Oil & Gas, Aerospace, and Manufacturing.
• Canada invested approximately GBP 42.7
million in the UK last year – 8.3% of the country’s
FDI.
• About 700 UK companies operate in Canada,
including Carillion, HSBC, Aviva, Burberry, Gü,
Tyrell’s, Twinnings, Cadbury, Guinness, Hendrick’s,
and Rimmel London.
• By doing business in Canada, UK companies
benefit from similar legal and business practices,
and familiar product and service providers.
Historical links
• Mutual migration
• Common military history
• Shared system of government
• Part of the Commonwealth of
Nations
• Same Head of State and Monarch
• Common language

16. Canada - Things to Consider
To do list
 Assess your product’s potential through a first in-
market approach (market study, business trip,
meetings)
 Consider cultural diversity (10 different
provinces)
 Dedicate a significant budget for logistics, get
ready to invoice in a foreign currency, and to
deal with customer requirements in different
time zones (6 time zones)
 Place your customer at the core of your
strategy: customer service and support are very
important to Canadians
 Build strong relationships with your partners
and clients: Canadian business relies on trust
 Get ready to travel: Canadian clients will want to
meet with you several times before closing a deal
 Get ready to experience real winter… Eastern
Canada experiences long winters every year,
from November to March-April
To NOT-do list
 Consider Canada as an unchallenging market
because of the cultural similarities between our
countries
 Consider Canada as a very high potential
market: our population is only 10% of the US’s
 Overlook legal and regulatory issues
especially in the agri-food and the pharma
sector
 Enter the Canadian market as a whole: it’s
better to focus on one province and develop a
strong presence
 Consider Canada as a winning ticket to the
US market: successful Canadian business
development won’t guarantee your success in
the US, it’s only a gateway
 Get distracted by Canadians’ welcoming
nature: we’re nice to everyone, it doesn’t mean
we’ll do business with you!
 Neglect the power of networking,
partners and referrals: word-of-mouth
is extremely effective in Canada

17. Go Canada Programme Overview
The Programme will provide companies with:
 1:1 consultancy support from Altios
 Individual tailored market research
 Group workshops to address common export issues and to optimise
individual sales pitches
 Four day group visit to Canada involving qualified meetings with potential
customers or partners
 Four nights’ accommodation in Toronto hotel
 50% assistance towards flight costs (maxi of £400)
 Guidance on follow-up action plan on how to develop the opportunities
Total Cost £1,000 plus VAT per company

18. 1:1 Consultancy
• Opportunity to describe your company and products
• Any existing knowledge of the market
• Define objectives, market intelligence required, perfect
partner profiles
• Identify opportunities in Canada
• Altios will work with the company directly during the
Programme

19. Pre Visit Training
• Workshop 1 and 1:1 meetings
- Challenge of Export – selling and documentation
- Researching the Canadian market
- Channels of Distribution
- Canadian Legislation
- 1:1 meetings
• Workshop 2
- Pitch Optimisation Programme

20. Market Visit - Toronto
• 4 day market visit to Toronto – 11 September 2017
• Group hotel reservation
• Breakfast Briefing on first morning in Toronto
• Evening Networking reception
• Individual itineraries (approx. 8 sales/partner meetings)
• Sales opportunity and learning experience
• Assistance with logistics
• Support throughout the visit

21. Follow Up Support
• Follow up support – week following visit
• Opportunity to assess market visit and individual meetings
• Go Canada action plan to develop opportunity in the short term
• Financial assistance towards Export Market Visits (EMV)

22. Participant - Role
• Register for the Go Canada Programme
• Pay the fee to Invest NI
• Confirm objectives
• Provide marketing materials to Altios
• Respond to Altios communications and requests
• Keep training dates and market visit dates free
• Prepare for meetings
• Commit to follow up

23. Dates & Timeline
• 14 June 2017 Go Canada Launch
• 14 -15 June 2017 1:1 company meetings
• 1 July 2017 Participants confirmed, objectives agreed & fees
to be paid
• W/c 24 July 2017 Workshop 1
• W/c 14 August 2017 Workshop 2
• 11 September 2017 Market Visit to Toronto
• W/c 18 September Follow up and Action Plan development

24. Thank You
Catrina McNeill –
catrina.mcneill@investni.com
T: 028 9069 8363